That’s right! I proclaim the iPhone will destroy our economy, possibly, maybe… here’s my theory….
Even in this economy, the iPhone continually is beating sales results over last year. Apple reports that Quarterly iPhones sold were 5.2 million, representing 626 percent unit growth over the year-ago quarter. These are 3rd quarter results for 2009.
“We’re making our most innovative products ever and our customers are responding,” said Steve Jobs, Apple’s CEO. “We’re thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year.”
- Wow! So many phones! So many Apps! That’s 288 apps per new iPhone sold! Of course that number is flawed because there are a lot more than 5.2 million iPhones out there purchasing these apps but I think a more conservative number would be 20 apps per iPhone sold (I bought 20 myself). That number is only increasing everyday as more apps come online to help us out in our daily lives. Now what would happen if the iPhone was sold on multiple carriers? Business would quadruple!?!
So here’s how my theory works: The iPhone has been the most versatile and indispensable tool I have to control my expenses. I use the free “Mint.com app” to track all my credit cards, debit cards, student loans, car lease payments and even the 401k. The Mint app is great for tracking my fixed expenses but fixed expenses account for 76% of my income. 24% of my income goes out through a category called “Cash Withdrawals”. It’s a category I never really did a great job documenting or controlling. Sort of like a big slush fund in my own personal budget.
There’s an App for that! As seen on the iPhone commercials, I’m now using the “IXpenseIt” app. Used diligently, you can track every expense you make with cash, get a good idea of where you money is really going and adjust accordingly. The app includes basic reporting options, you can view your spending history in the form of a bar chart, pie chart or just email a report directly to your inbox whenever you want.
With this app I expect to be able to decease my spending by 4%, or 84$ a month.
So, Let’s say that 6% of the U.S. Population owns an iPhone. The current U.S. population is 307,655,561 people, that would be 18.5 million iPhone’s in use in the U.S. and then let’s say 10% of those iPhone users actually buy, and use religiously, the “IXpenseIt app”. These 1.8 million people cutting $84 out of their budget comes out to $151,200,000 in lost sales to mostly restaurants, Starbucks and the like.
OK, so it won’t actually kill the economy but the iPhone will help continue to pound the restaurant and coffee house industry as we are seeing ;leading to the loss of more lower paying jobs. But I also predict that the iPhone will make us healthier. I say this as I use my “Couch to 5K” app…. I will be running my first 5K around the holidays. But that is a story for another day. Could the iPhone even lower health care expenses?